trendwatching.com’s EMPATHETIC PRICING

In 2014, South & Central American consumers are refusing to face daily pain points alone. Instead, they’re turning to brands that provide relief in the form of flexible (& imaginative) pricing and discounts. Check out the 'painkillers' from Coffee Lab, PlayArte, Coca-Cola Chile, Opticolor and more.

trendwatching.com’s EMPATHETIC PRICING

2.
Definition:
EMPATHETIC PRICING: In 2014 South & Central
American consumers are refusing to face daily pain
points alone. Instead they’re turning to brands for
relief: in the form of flexible (& imaginative) pricing and
discounts, which target and relieve their pain.
www.trendwatching.com/southcentralamerica/trends/empatheticpricing
Empathetic pricing
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DRIVING THIS TREND:
1. human values
Consumers expect more than a sense of humor.
2. FROM WE TO ME
Individuals have individual needs.
3. THROUGH THICK & THIN
There when it counts.
4. DISCOUNT FATIGUE
Endless discounts have lost their (cheap) thrill.
www.trendwatching.com/southcentralamerica/trends/empatheticpricing
Empathetic pricing
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1
HUMAN VALUES
Consumers expect more than a sense of
humor.
As the expectation for HUMAN BRANDS spreads
across the region, many businesses feel a sense of
humor in their marketing is enough to show their
‘human’ side. But now consumers truly respect (and
reward) brands that embrace the harder to adopt
attributes: authenticity, compassion and sympathy.
www.trendwatching.com/southcentralamerica/trends/empatheticpricing
Empathetic pricing
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5.
2
FROM WE TO ME
Individuals have individual needs.
For some time, consumers have expected brands
to be concerned about social, political and
environmental issues. This won’t go away! Yet in
2014, they also expect brands to consider the issues
they face as individuals.
www.trendwatching.com/southcentralamerica/trends/empatheticpricing
Empathetic pricing
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6.
3
THROUGH THICK &
THIN
There when it counts.
Many brands in Latin America are eager to be
present in individuals’ lives during happy moments
(celebrations, sporting events, vacations etc.). But
Latin Americans burdened with the demands of
urban life, career pressure or family challenges, will
welcome support that eases their struggles.
www.trendwatching.com/southcentralamerica/trends/empatheticpricing
Empathetic pricing
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8.
4
DISCOUNT FATIGUE
Endless discounts have lost their
(cheap) thrill.
The once exciting phenomenon of ‘collective buying’
is now collectively boring. After 2012’s boom, many
collective buying sites have closed or changed their
business model. By attaching meaning to a deal or
targeting it in a surprising (i.e. empathetic) way, brands
can energize those suffering from discount fatigue.
www.trendwatching.com/southcentralamerica/trends/empatheticpricing
Empathetic pricing
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8 out of 10 consumers reported they would
be more likely to purchase a product from a
company that supports good causes and has
fair prices, than a company that simply offers
discounts.
- Purpose, Edelman, January 2013
www.trendwatching.com/southcentralamerica/trends/empatheticpricing
Empathetic pricing
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PAIN POINT
To ease road congestion in São Paulo, certain
license plates are prohibited from the central roads
between 5pm and 8pm. This means, for example,
that some workers must wait around after their
shift ends.
PAINKILLER
In December 2013, the movie theater PlayArte
offered discounts to drivers affected by the traffic
calming restriction between 5pm and 7pm: they
paid BRL 16 for a ticket instead of BRL 20.
www.trendwatching.com/southcentralamerica/trends/empatheticpricing
Empathetic pricing
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12.
PAIN POINT
Time-starved Chileans are increasingly aware they
don’t exercise enough: 72% are trying to lose weight
(GfK Adimark, July 2013). Yet they struggle to fit
physical activities into their busy schedules.
PAINKILLER
As part of the ‘Movimiento es Felicidad’ (Movement
is Happiness) campaign, Coca Cola Chile equipped
a taxi with bicycle pedals that passengers could
use to earn a discount on their fare.
www.trendwatching.com/southcentralamerica/trends/empatheticpricing
Empathetic pricing
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13.
PAIN POINT
People who’ve had bariatric (weight loss) surgery
experience a greatly reduced appetite. Therefore
the portions at most restaurants are too big for
them. As a result, they overpay and food is wasted.
PAINKILLER
In Brazil the cities of Curitiba, Campinas, Porto Alegre
and the state of Mato Grosso do Sul, are passing laws
that require restaurants to offer cheaper ‘half portions’
of menu items to customers who can prove (via
medical report) that they underwent bariatric surgery.
www.trendwatching.com/southcentralamerica/trends/empatheticpricing
Empathetic pricing
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PAIN POINT
Brazilians face the real threat of armed robbery
while out at restaurants or bars: both frequent
targets, as robbers expect patrons and the
establishment to hold cash.
PAINKILLER
In October 2013, the Twister Pub in Rio started offering
a discount of 5% to those who settled their bill via credit
card. The owners believed that once robbers knew they
carried less cash, everyone would be at less risk. The
monthly revenue increased by 15% thanks to this policy.
www.trendwatching.com/southcentralamerica/trends/empatheticpricing
Empathetic pricing
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PAIN POINT
Growing old is painful! Simple as that ;)
PAINKILLER
In August 2013, the Venezuela-based optician
Opticolor launched a three month promotion that
gave a discount which increased relative to the age
of the customer. For example: a 55 year old got 55%
off, while a 70 year old got 70% off.
www.trendwatching.com/southcentralamerica/trends/empatheticpricing
Empathetic pricing
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16.
PAIN POINT
In June 2013, mass protests were triggered in São
Paulo by the government’s proposal to increase
fares for the city’s buses by BRL 0.20.
PAINKILLER
As a symbol of solidarity, the São Paulo-based café
Coffee Lab lowered the price of its espresso from
BRL 5 to BRL 0.20 during the protests.
www.trendwatching.com/southcentralamerica/trends/empatheticpricing
Empathetic pricing
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17.
PAIN POINT
While the heat of a Brazilian summer has its
upsides, when it’s too hot it can be a source of
discomfort.
PAINKILLER
In February 2014, Brazilian etailer Submarino
offered discounts that matched the temperature
outside. Summer items, such as swimwear or air
conditioners, were reduced in percent by the Celsius
equivalent of the highest temperature that day.
www.trendwatching.com/southcentralamerica/trends/empatheticpricing
Empathetic pricing
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NEXT
What opportunities are there for Latin American brands who wish to show a
little empathy?
www.trendwatching.com/southcentralamerica/trends/empatheticpricing
Empathetic pricing
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MAKE REAL-TIME MARKETING ‘REAL’
Brands across Latin America have community managers prepared to rush out a tweet or meme in response
to current events. Why not go a step further and enact instant, same-day EMPATHETIC PRICING?
GET PERSONAL
Once you get involved and help alleviate one specific pain point, don’t be surprised if consumers
expect you to care about the next one that comes along.
FLAWSOME
Expect FLAWSOME brands to show their own pain points and maybe even ask for consumers’ help. In the
right circumstances, people respond positively to vulnerability. It’s all part of being a HUMAN BRAND.
www.trendwatching.com/southcentralamerica/trends/empatheticpricing
Empathetic pricing
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EVERYBODY HURTS
Everyone has their own problems, so you won’t run out of new issues to cater to ;)
Just a few pain points waiting to be addressed by EMPATHETIC companies:
• Football team losses
• Strikes
• World Cup/Olympics inflated prices in Brazil - due to last till 2017!
• Divorce
• Even big noses!
BE PREPARED
Once you get involved and help alleviate one specific pain point, don’t be surprised if consumers
expect you to care about the next one that comes along.
www.trendwatching.com/southcentralamerica/trends/empatheticpricing
Empathetic pricing
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